What is the Al Rajhi Business Premises Financing-i?
Business Premises Financing-i from Al Rajhi bank is a syariah compliant property loan strictly for mortgaging business premises. This loan uses the Islamic concept of Bai Bithaman Ajil ( BBA) otherwise known as a deferred payment sale based on a marked up price.
Business Premises Financing-i is generally for mortgaging a new shop house, shop lot or commercial unit that has completed and passed Certificate of Fitness for Occupation. In some cases this Al Rajhi property loan may be used for premises under construction. Whichever kind of new business you're getting off the ground both floating and fixed interest rate options are available to you.
To ease your move costs and capex burden Al Rajhi can include Takaful premiums and other associated charges in your financing, with an additional 5% margin available for businesses taking this option.
What is so great about this loan?
One awesome benefit of loan is that the bank will not charge you on your late payments. Sounds almost too good to be true. You're advised not to abuse this privilege though as it may affect the overall credit-worthiness of your business.
Al Rajhi practices a higher ratio of interest to principal repayment at the get go. This means that 70% of your loan repayment will be going toward the interest and 30% will be paid to the principal. A useful means of controlling interest costs over the lifetime of your mortgage.
Can I pay extra cash onto my mortgage and reduce my principal?
Unfortunately, no, you can't.
Can a foreigner apply?
No. This loan is for Malaysians only.
What kind of documents do I need for this property loan application?
- Copy of Sales and Purchase Agreement
- Valuation report (valuers must be approved by the bank)
- Certificate of Fitness for Occupation (CFO) for completed property
Personal and Business documents
- Copy of NRIC (front and back)
- Latest 6 months salary slip
- Form D, 9, 24 & 49
- Business Registration
- Copy of income tax and proof of tax payment
- Sales and purchase agreement or booking receipt